EXCLUSIVE: World Bank, AfDB blacklist more firms, consultants in Nigeria for corruption

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The World Bank and the African Development Bank (AfDB) have sanctioned and blacklisted more companies and consultants operating in Nigeria for various breaches of their contracting processes considered fraudulent and corrupt.

Similar sanctions were issued to several contracting firms and individual consultants in other jurisdictions around the world.

These companies are big players in various sectors of the Nigerian economy. They are handlers of ongoing or completed multi-billion Naira contracts for the construction of railway systems, highways, housing estates, airport terminals, municipal engineering, water resources, and hydro-power engineering projects in the country for federal and state governments.

They were debarred and declared ineligible to be awarded any World Bank-financed contracts for at least a year, between June 4, 2019 and March 3, 2020.

Some of the companies and consultants were accused of violating the provisions of the guidelines for the selection and employment of consultants under International Bank for Reconstruction and Development (IBRD) loans and the International Development Association (IDA) credits and grants by World Bank borrowers.

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Others were sanctioned for infractions of the policy as spelt out in the Procurement Guidelines and the World Bank Procurement Regulations for Investment Project Financing Borrowers for projects after July 1, 2016.

Details of the violated guidelines

Those said to have violated procurement Guidelines 1.16a(i) are those accused of engaging in “corrupt practice” by either offering, giving, receiving, or soliciting, directly or indirectly, anything of value to improperly influence the actions of another party.

Those accused of “collusive practice” are those found to have colluded between two or more parties to achieve an improper purpose, including to influence improperly the actions of another party.

Those in this category include Idemia Nigeria Limited, which was blacklisted for the period between November 29, 2017 and May 28, 2020; Efemaz Construction & General Services Limited and Efe Michael Udumebraye, both debarred for four years between December 13, 2018 and December 12, 2022.

Also in that category are Rojoke Cne Services Limited, Cne Environmental & Waste Services Limited, and Robinson Ekenedilichukwu Ojoko, all debarred for the period between February 5, 2019 and February 4, 2024.

Those sanctioned for violating Paragraph 1.22(A)(V) (Aa) of the October 2006 and May 2010 Consultant Guidelines are those whose Request for proposals and the proposals were prepared in languages other than the national language of the Borrower approved by the Bank.

Those affected include Victor Dike (debarred for two years between April 23, 2018 and November 22, 2020), Best Scan Solutions Limited (January 24, 2017 and January 23, 2021), Iyke Ambrose (January 24, 2017 and January 23, 2021), and Quick Projects Limited (April 23, 2018 and November 22, 2021).

Violators of Procurement Guidelines 1.14(a)(i) are companies accused of “mis-procurement”, by providing services for which the contract was not awarded in accordance with the agreed provisions of the Loan Agreement with the bank.

Those affected include Marabef Global Limited (blacklisted for the period between January 11,-2018 and January 10, 2022), Patrick Alozie Onwuka (debarred January 11, 2018 January 10, 2022), Contransimex Nigeria Limited, Sego Ventures Nigeria Limited and D.A. Construction Limited, all currently serving various subsisting sanctions.

For consultants that violated the Procurement Guidelines 1.23(a)(i), the World Bank said they were engaged in “corrupt practices” earlier defined in this report.

Those involved included Emmajoko Nigeria Enterprises and its proprietor, Henry Chinedu Ojoko, and Benson Ojoko (all debarred from World Bank contracts effective January 29, 2019 till January 28, 2024).

Besides, violators of Guidelines 1.15(a)(i) & (ii) were accused of issuing References to the Bank considered not in line stipulated standard, which suggested suspicious intentions towards fraud and corruption.

The World Bank report listed the culprits to include Snc-Lavalin International (Nigeria) Limited debarred for ten years (April 17, 2013 and April 17, 2023).

For Gurpreet Singh Malik, Kamal Sharda, Karitex Limited, Sharda Impex (U.K.) Limited and Karitex Limited, they all received permanent debarments from the World Bank since February 2000.

Cross debarment by World Bank, AfDB

Two of the companies, Lutoyilex Construct Limited and Oceanic Construction & Engineering Nigeria Limited as well as a consultant, Bamidele Obiniyi, received cross debarment sanctions from the World Bank and the African Development Bank (AfDB) between July 31, 2019 and May 13, 2022.

Cross-Debarment is a practice where firms and individuals debarred by one multilateral development bank (MDB) may be sanctioned, for the same misconduct, by other MDBs participating in the regime.

According to the World Bank, the minimum period of ineligibility covers about three-years, provided the companies and individuals demonstrate to the Bank Group’s Integrity Compliance Officer sufficient readiness to take remedial measures to address offences as well as establish effective integrity compliance programme acceptable to the Bank.

A senior official of the World Bank who requested that his identity should not be revealed told our reporter the sanctions to the companies and individuals followed due process, as they were all granted the opportunity to defend themselves before World Bank Group’s Integrity Compliance Department.

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Bassey Udo is PREMIUM TIMES’ Business & Economy Editor. He has covered finance, energy, oil, gas & extractive industries for over a decade. He is a winner of the Wole Soyinka Award for Investigative Journalism, and the Thomson Reuters Foundation (Wealth of Nations) Award for Business Reporting. Bassey is an alumnus of the U.S. International Visitors Leadership Programme. Twitter: @ba_udo

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